Target Price – August 2019

Target Price

Brands Offering The Highest Discounts Account For Nearly Half Of All New Car Sales

– The 10 brands with the highest new car cash discounts account for nearly half of the UK’s new car sales in the first half of 2019.

– Low discount brands found to account for just 12.35% of the UK’s new car market.

– UK experiencing another year of declining sales, with new car market down 3.41% year-on-date, yet brands which offer high discounts on new models found to buck the trend.

– Average cash discount across the market have steadily risen since January, and stood at 7.60% or £2595 at the end of June.

The 10 brands which have offered the highest cash discounts on new cars account for nearly 50% of the UK’s new car sales after the first six months, according to exclusive market intelligence from What Car?’s new car buying platform. 

Analysis of What Car?’s in-market Target Price mystery shopper data on cash discounts for the first six months of 2019 found the 10 brands with the highest price reductions are beating a declining market, and account for 49.71% of the year-to-date UK new car market share.

June new car registration figures from the Society of Motor Manufacturers and Traders (SMMT) show the UK new car market is down 3.41% for the year. However, brands offering high discounts were found to perform better.

Citroen, who offered the highest discounts in the first six months of the year, at 11.75%, has seen its year-to-sate market share grow by 4.16% in the first six months, while Seat which recorded the fourth largest discounts grew its market share by 5.24% in the first six months. 

Aggressive discounting was found to help other brands work against the declining market, with Mercedes-Benz and Volvo also recording growing sales – Volvo in particular saw its market share grow by 27.05% in the first six months. Others, including Volkswagen and BMW were also found to have beaten the market, recording a lower fall in their market share than the industry average. 

New car sales data from the Society of Motor Manufacturers and Traders (SMMT) shows the 10 brands with smallest cash discounts accounted for just 12.35% of the year-to-date market share in June. 

What Car?’s data shows Dacia buyers received the lowest discounts, of just 0.96% below the list price. However, Dacia has recorded a significant rise in its year-to-date market share, up 36.36% – suggesting its policy of low vehicle prices is attracting a growing number of buyers. Other low discount brands with market share growth included Land Rover, MG and Toyota.    

Steve Huntingford, editor of What Car?, said: “We are seeing manufacturers starting to offer significant discounts on new cars this year to battle a declining market. New car discounts have been growing steadily since January this year, with certain brands appearing to use them to maintain or improve their market share. 

“Interestingly, there is a clear split between premium brands; some are offering large discounts such as Mercedes-Benz and BMW, while others such as Lexus and Land Rover are pursuing a policy of lower offers.” 

Top 10 Target Price cash discounts 2019

Brand  January  February  March  April  May  June  Average
TP Cash Discount
Market Share YTD (June)
Citroen  10.94% 11.64% 10.38% 12.97% 12.21% 12.34% 11.75% 2.32%
Volkswagen 11.08% 11.27% 11.72% 10.75% 11.07% 10.84% 11.12% 8.74%
Vauxhall 10.88% 10.98% 10.48% 10.31% 10.39% 10.10% 10.52% 7.45%
Seat  9.76% 9.90% 9.97% 10.06% 10.87% 10.87% 10.24% 2.98%
Smart 9.59% 9.55% 9.35% 9.71% 9.85% 9.85% 9.65% 0.25%
Mercedes-Benz 8.83% 8.56% 8.73% 8.65% 8.83% 8.63% 8.70% 7.33%
Ford  8.22% 8.44% 8.51% 8.07% 8.19% 8.19% 8.27% 10.07%
Volvo 8.20% 8.08% 8.16% 8.17% 8.23% 8.17% 8.17% 2.36%
Mitsubishi  7.72% 7.58% 7.58% 8.26% 8.26% 8.26% 7.94% 0.77%
BMW  7.00% 7.24% 7.89% 8.24% 8.36% 8.52% 7.88% 7.09%

 

Bottom 10 Target Price cash discounts 2019 

Brand  January  February  March  April  May  June  AverageTP Cash Discount   Market Share YTD (June)
Dacia 1.02% 1.02% 0.93% 0.93% 0.93% 0.93% 0.96% 1.46%
SsangYong 2.08% 1.88% 1.85% 1.81% 1.77% 1.77% 1.86% 0.09%
MG 2.48% 2.48% 2.50% 2.50% 2.50% 2.50% 2.49% 0.50%
Infiniti 0.44% 3.36% 3.36% 3.35% 3.35% 3.35% 2.87% 0.02%
Land Rover 3.37% 3.33% 3.11% 3.11% 3.48% 3.58% 3.33% 3.32%
Subaru 3.98% 3.88% 3.88% 3.43% 3.43% 3.35% 3.66% 0.11%
Mazda 4.08% 3.81% 3.67% 3.67% 3.36% 3.46% 3.68% 1.69%
Lexus  5.03% 5.11% 3.71% 3.74% 3.68% 3.80% 4.18% 0.59%
DS 3.94% 3.94% 4.94% 4.93% 4.03% 3.39% 4.20% 0.14%
Toyota 5.54% 3.98% 4.31% 3.82% 3.88% 3.85% 4.23% 4.47%

N.B: Deals correct at the time of release 

For further insight and additional whatcar.com market data, please contact insights@haymarket.com